NEW YORK BANK RATE.

New Zealand Herald, Volume LXIX, Issue 21118, 27 February 1932, Page 11

NEW YORK BANK RATE.

REDUCTION ANNOUNCED.

FROM 3! TO 3 PER CENT.

FIRST CHANGE SINCE OCTOBER

By Telegraph—Press Association—Copyright. (Received February 2fi, 7.30 p.m.) NEW YORK, Feb. 20 Tlx? rediscount rate of the New York Federal Reserve Bank was reduced to day frorn 3i lo .3 per cent.

The rale now superseded lias been in force since October 15. The New York rate was 2 per cent, from December 24. 1930, to May 9, 1931 ; it was then reduced to the uripreccdentedly low level of 1!j per cent., which was maintained until October 11. The rate was then raised to 2-j per cent., and within a week to 3? per cent.

NO CHANGE IN LONDON.

FURTHER FALL EXPECTED.

BUOYANCY OF BRITISH FUNDS. (Received February 20, 7.30 p.m.) British Wireless. RUGBY, Feb. 25. There was to-day no change in the bank rale, which remains at 5 per cent. A feature of the London Stock Exchange is tho remnrkablo advance in British funds on substantial buying following the firmness of sterling, the improvement in the revenue returns and the expectation of a further early reduction in tho bank rate. Thero have been heavy purchases of tho fupding loan and of the 5 per cent, war loan on foreign account. Quotations foi 4 per cent , funding loan rose £1 7s 6d to £92 10s; 5 per cent, conversion loan rose 17s 6d to £lO4 7s 6d; 4 per cent, consols rose 17s 6d to £B9; and 5 per cent, war loan rose 5s to £IOO 17s 6d.